Italy faces intense competition in the tourism sector from its neighbors France and Spain

Monday 30 September 2013, Amsterdam

In 2012, Italy was ranked fifth by the United Nations World Tourism Organization (UNWTO) in terms of inbound tourist arrivals and international tourist receipts. While the country recorded a decline in domestic tourism in 2011, inbound tourism continued to increase. In fact, inbound tourism growth remained strong through the 2009 financial crisis and has remained so through the European debt crisis. The travel and tourism sector accounted for 10.3% of the nation’s total GDP and 11.7% of its employment in 2012. In the World Economic Forum’s (WEF’s) Travel and Tourism Competitiveness Index 2013, Italy moved up one from 2011 to stand at 26th of 140 countries in 2013. The country was ranked first in terms of tourism infrastructure.

The growth of the travel and tourism sector slowed in 2012 as the country entered another recessionary period. Besides the nation’s economic contraction, a decline in investment and consumer spending was also recorded. According to the National Statistic Institute (Istat), the economy contracted by 2.6%, investment decreased by 2.3% and domestic consumption declines at a rate of 0.7% over figures from 2011.

The number of tourists from Brazil, Russia, India and China (BRIC countries) increased during the last five years. This upsurge is expected to make up for the decrease in domestic and European tourists. The government and tourism promotion agencies have been making efforts to attract tourists from these source countries. For example, in September 2010, Italy, France and Spain entered into an agreement to collectively attract international tourists from the BRIC countries. Under the joint logo of “European Passion”, the three countries aim to promote the Mediterranean Arc in BRIC countries.

Italy faces intense competition in the tourism sector from its neighbors France and Spain. In order to gain a competitive edge over its competitors and attract tourists to the country, the government launched the tourism revival plan in January 2013. The plan is aimed at revamping tourism taxes, better using taxpayer’s money to improve hotelier and graduate training.

Italy has a large number of museums and palaces which attract many visitors. For example, the Galleria degli Uffizi at Florence was visited by 1.8 million people in 2012, while the Palazzo Ducale in Venice attracted 1.3 million visitors. According to a list of the top 100-most-visited museums worldwide in 2012 compiled by the Art Newspaper, 12 were in Italy.

Italy boasts one of the most well developed airport infrastructures in the world and is ranked 24th out of 140 countries in the WEF’s Travel and Tourism Competitiveness Index 2013. The infrastructure is being modernized and improved to provide world-class facilities. The Milan Airport Authority is undertaking an expansion project at Milan airport with an investment of US$2,467 million. The project, which is expected to be completed by early 2014, will enhance capacity and modernize facilities.

The increase in domestic and inbound tourist volumes led to greater demand for accommodation. Several multinational hotel chains marked their presence in the Italian hotel market. JW Marriott’s first property is expected to open in Italy by the end of 2014. The Spanish hotel chain, Melia, will further expand its footprint in the Italian hotel market with the opening of a hotel in Sicily by the end of 2013.


This report offers:
• In depth analysis and market overview of the Travel and Tourism market in Italy including market dynamics, key trends and issues and a SWOT analysis.
• An insight into the performance outlook and key trends/issues of the three main tourism flows, domestic, inbound and outbound.
• A segmented breakdown of the sectors within the Italian Travel and Tourism market including airlines, hotels, car rental and travel intermediaries.
• A look into an assortment of Italian airlines, hotels, car rental companies and more including company overviews, services, history, employees, etc.

This will facilitate:
• The increasing of your knowledge of the Travel and Tourism industry in Italy.
• Your understanding of the key drivers and issues within this industry.
• A clear understanding of market opportunities and entry strategies to gain or grow your market share in the Italian Travel and Tourism market.
• A greater understanding of the competitive landscape of the Italian Travel and Tourism industry.
 
Target audience
• Travel and Tourism companies (Italian and Global).
• Suppliers to Travel and Tourism companies.
• Contractor research organizations.
• Trade body, academia or other industry observers.
• Companies involved at any stage in the manufacturing, procurement and marketing process.